Orrstown Financial Services, Inc. Announces 1st Quarter Earnings, Quarterly Dividend

Shippensburg, PA (April 22, 2010) – Orrstown Financial Services, Inc. (NASDAQ: ORRF) is pleased to announce net operating results for the first quarter ended March 31, 2010.

Highlights for Orrstown Financial Services, Inc.:

Net income of $3,406,000 for the first quarter of 2010, an increase of 12.6% vs. first quarter of 2009

Net interest income improved by 30.9%  vs. first quarter of 2009

Net interest margin improved by 36 basis points vs. first quarter of 2009

Primary earnings per share increased 10.6% vs. first quarter of 2009

Loans increased 8.5% and deposits increased 27.6% vs. first quarter of 2009

For the first quarter of 2010, Orrstown Financial Services, Inc. improved net income by $381,000, an increase of 12.6% vs. the same quarter last year. As a result of the Company’s continued growth, net interest income for the first quarter of 2010 was $10,497,000; an increase of $2,475,000 over the $8,022,000 realized during the same quarter in 2009. Non-interest income showed an increase of 12.7%, while non-interest expenses rose 14.4%. During the first quarter of 2010, core earnings solidified as the net interest margin increased to 3.76%, a gain of 36 basis points vs. the same quarter in 2009. Balance sheet growth of 21.4% over last year resulted in total assets reaching $1.316 billion as of March 31, 2010. 

Commenting on the quarterly performance, Thomas R. Quinn, Jr., President and Chief Executive Officer, stated, “Our core fundamentals remain solid and we were pleased with our first quarter results given the challenging economic conditions.”   In March, Orrstown Financial Services, Inc. completed a common stock offering that netted approximately $37.5 million in additional capital positioning the Company to take advantage of future opportunities, and ensuring that its capital ratios remain strong.  Mr. Quinn continued, “Our common stock offering was well received by the investment community and was one of the strongest capital raises by a financial institution this year in terms of price to book value.” 

The Board of Directors approved a second quarter cash dividend of $.22 per share for shareholders of record on May 7, 2010.  The dividend will be paid on May 19, 2010. 


Please view the full press release on our website: http://www.snl.com/IRWebLinkX/news.aspx?iid=100631

With over $1.3 billion in assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown Bank, provide a full range of consumer and business financial services through twenty one banking offices and two remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland.  Orrstown Financial Services, Inc.’s stock is quoted on the NASDAQ Capital Market under the symbol ORRF.

Safe Harbor Statement:  This news release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors.  Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: ineffectiveness of the Company's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations, including industry consolidation and development of competing financial products and services; interest rate movements; changes in credit quality; volatilities in the securities markets; and deteriorating economic conditions, and other risks and uncertainties, including those detailed in Orrstown Financial Services, Inc.'s filings with the Securities and Exchange Commission.  The statements are valid only as of the date hereof and Orrstown Financial Services, Inc. disclaims any obligation to update this information.

Another Great Year for the Orrstown Bank Youth Advisory Council!

Shippensburg, PA   (April 15, 2010)– Crystal Stine, Marketing Associate II and Youth Advisory Council Chairperson is pleased to announce the successful completion of Orrstown Bank’s second Youth Advisory Council program. Orrstown Bank first developed the Youth Advisory Council program in December 2008 to gather information and feedback on banking from a diverse group of students belonging to the “Millennial” generation.

The advisory council, consisting of Shippensburg Senior High School students Mary-Carolyn Burt, Lauren Furry, and Arnela Zejcirovic, and Shippensburg University students Anna Kovanic, Scott Henry, and Jessica Rabuck, met once a month from September 2009 to April 2010. The group successfully completed various projects during their term, including: Money Journals, Peer Survey, Mystery Shopping an Orrstown Bank branch, and an Advertising Competition. This year the students were also given the opportunity to network with young professionals at Orrstown Bank and learn about basic banking and financial planning.

Mrs. Stine commented “Orrstown Bank is pleased to have had each of these outstanding students participate in this program. We look forward to implementing their creative and insightful feedback in future marketing, communication and account features that will directly benefit their peers.”

For more information about the Orrstown Bank Youth Advisory Council, contact Crystal Stine, Chairperson at cstine@orrstown.com.

With over $1 billion in assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown Bank, provide a full range of consumer and business financial services through twenty-one banking offices and two remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland.  Orrstown Financial Services, Inc.’s stock is quoted on the NASDAQ Capital Market under the symbol ORRF.

Orrstown Bank Announces Promotion of Harter, Hiring of Coy

Shippensburg, PA   (April 5, 2010) - Orrstown Bank is pleased to announce that, effective February 25, 2010 Bill Coy joined the Company as a Branch Executive Officer. Coy will serve the Bank’s Norland Avenue office in Chambersburg, PA. This position was previously held by Lee Harter, who was promoted to Vice President, Regional Sales Manager in January. Lee will now be based out of the Bank’s King Street, Shippensburg, PA and will oversee the branches in the Bank’s southern region.

With over $1 billion in assets, Orrstown Financial Services, Inc. and its subsidiary, Orrstown Bank, provide a full range of consumer and business financial services through twenty-one banking offices and two remote service facilities located in Cumberland, Franklin and Perry Counties, Pennsylvania and Washington County, Maryland.  Orrstown Financial Services, Inc.’s stock is quoted on the NASDAQ Capital Market under the symbol ORRF.